Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. contribution margin and contribution margin ratio

Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's...

80.2K

Verified Solution

Question

Accounting

image
Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in mallions of dollars.) million b. What is McDonald's contribution margin ratio? c. How much would operating income increase if same-store sales increased by $1,300 million for the coming year, with no change in the contribution murgin ratio or fixed costs? Round your answer to the closest miltion. million

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students